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RAK to develop 2,740 MW power generation capacity for new residential communities
The Ras Al Khaimah Government is offering guaranteed power, water and gas supplies to property buyers, in a bid to boost sales of new residential communities, a top official said.
- By Saifur Rahman, Business Editor
- Published: 13:44 July 14, 2008
Ras Al Khaimah: The Ras Al Khaimah Government is offering guaranteed power, water and gas supplies to property buyers, in a bid to boost sales of new residential communities, a top official said.
“We can guarantee that there won't be any shortage of power, water and gas supplies to new projects and communities,'' Dr Khater Massaad, chief executive of the Ras Al Khaimah Investment Authority (Rakia), told the media here on Sunday.
A massive growth in population, supported by construction activities, could far outstrip growth in utilities and eat up the spare power generation and water desalination capacity in the coming years.
Concerns of a possible shortage in power supply in future is detering many investors to put their money in real estate projects, especially in Ajman and Umm Al Quwain, analysts say.
In three years time, the northernmost emirate of the UAE will have more than 2,740 mega watt power generation capacity that could meet the emirate's growing demand.
“We are currently building a 120MW power plant to be followed by another 120MW plant in Al Hamra Village,'' Dr. Massaad said.
“These will be followed by a 500MW plant that will be completed by 2010 and a fourth plant with a capacity to produce 2000MW electricity, to be completed in three to four years time.''
Utility sector in the UAE's four Northern Emirates, Ajman, Umm Al Quwain, Fujairah and Ras Al Khaimah, falls within the jurisdiction of the Federal Electricity and Water Authority (Fewa). The majority of the UAE's utility assets are still under government control. Only Abu Dhabi partially privatised its power and desalination assets.
However, the federal government last year approved in principle to allow private participation in the utilities sector in the Northern Emirates, under certain guidelines to be set up by Fewa.
There is a growing concern among investors and developers of power supply shortage in Northern Emirates, especially in Ajman and Umm Al Quwain, where massive developments will drive demand for power and water in the coming years.
Rakia is negotiating with the Fewa to bring in more investment into the emirate's utilities sector, under a public-private partnership model, according to Dr Massaad.
“Under the auspicies of Rakia, we are trying to attract utilities companies to partner with us to develop power and water desalination projects to meet the growing demand,'' he said.
Rakia's property and asset development arm Rakeen announced a Dh5 billion mixed-use project on Saturday – the Gateway City – in addition to the new neighbourhoods such as Al Hamra Village, Mina Al Arab, The Cove, Al Marjan Island, Al Noor City, RAK Convention Centre, RAK Financial City and Bab Al Bahr. These projects will require additional utility supplies.
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